Most of us were not born with golden, silver, or bronze spoons. Many of us have our fair share of difficulties in our personal life. While it is tough to make ends meet, desires burn in the heart and spirit of the average man. They, too, are people and will try with all their power to obtain success and luxury. They are not greedy, but rather that they are hardworking people who wish to live decent lives. You may be wondering why I used the phrase “dignified life.” This is because the culture in which we live determines one’s value depending on our lifestyle.
To give a helping hand to such people, car loans were introduced as a blessing in disguise. What does the term mean, though? A vehicle loan (also known as an automotive or auto loan) is money a customer borrows to buy a car. Generally, a loan is a sum of money loaned to a person, company, or organization. The person lending the money is referred to as the lender, whereas the entity receiving the money is the borrower. A borrower promises to repay the complete principal balance and every interest (a % of the amount owed, usually computed on an annualized average) by a specific date, often by making monthly installments.
The source of this concept –
The General Motors Corporation (a car manufacturer founded in 1908 in Flint, Michigan) formed the General Motors Acceptance Corporation, or GMAC, in 1919, which gave birth to the vehicle loan. Following World War, I, GMAC was formed in response to an increased demand for vehicles among American customers. GMAC began operations in five North American locations in 1919, and its first office in the United Kingdom opened a year later. As the automotive lending industry grew, other automakers began to establish their financial sections. The Ford Motor Credit Company, created in 1923, was one of the most prominent. Despite the availability of vehicle loans, most American customers in the first half of the century paid in cash for their autos.